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Municipal Fund - Definition
Below, you'll find a definition of this investing term...

Definition:  A mutual fund is made up of money that is pooled together by a large number of investors who give their money to a fund manager to invest in a large portfolio of stocks and/or bonds.

TeenAnalyst Advice: Mutual funds are great because they offer regular investors a chance to diversify their portfolios, which is something they may not be able to do on their own.  Consider this, if you want to build a diversified portfolio of 30 stocks, you would probably need $30,000 to get started ($1000 per stock...which is usually the norm).  Or you could open up an account with a mutual fund for just $1000.

There's about 10,000 mutual funds out there, and they come in all different shapes and sizes.  Be sure to check out our mutual fund section!

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Mutual Funds - Learn about investing in mutual funds.

 

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